On CNBC's "Fast Money," Godfrey took a positive view of China's move to rein in its growing real estate market.

"It shows that global concerns are resurfacing, and any retrenchment is healthy," she said. "In terms of what's happening with China and trying to cull that property bubble, it's positive politically, neutral economically and healthy with respect to markets."

Godfrey said that Beijing's move was the ninth time it implemented control mechanisms in 10 years, and it was more likely to help avoid a real estate crash in China.

Taking a broader view of the stock market, Godfrey said that one sector that posted strong gains could be running out of steam.

"It's given us cause for concern over consumer staples because we think they've run, potentially, too far," she said. "But for some cyclical stocks this might provide attractive entry points."

Godfrey also said that markets are trading less based on data and more on "second derivatives," using as an example the budget cuts that took effect March 1 in the United States and the ensuing stock rally.

The cuts didn't matter, she added.

"It was more investors turning around, saying, 'You know what? This is going to force the government to remain accommodative.' And that's really what's driving the markets, rather than the underlying data," Godfrey said.

The market has been showing "certain signs of cautiousness," she added, as investors have been moving money into equities along with safe havens, and "short-sellers have reached a multiyear low," in effect, getting squeezed out of the market.

"So again, this kind of plays into our view that short-term, we are nervous and a pullback would be healthy to try to get these longer-term investors into the markets," she said.

Trader disclosure: On March 4, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is long SSYS; Jon Najarian is long V; Jon Najarian is long MA; Jon Najarian is long DVA; Jon Najarian is long MTC; Jon Najarian is long RDN; Jon Najarian is long STX; Joe Terranova is long VRTS; Joe Terranova is long SJM; Joe Terranova is long MJN; Joe Terranova is long AXP; Joe Terranova is long GPS; Joe Terranova is long KORS; Joe Terranova is long GS; Joe Terranova is long SWN; Simon Baker is funds long IWM; Simon Baker is funds long AAPL; Simon Baker is funds long AMAT ;Simon Baker is funds long BAC; Simon Baker is funds long FFIV; Simon Baker is funds long FXI; Simon Baker is funds long JNPR; Simon Baker is funds long QQQ; Simon Baker is funds long CSCO; Simon Baker is funds long GOOG; Simon Baker is funds long MS; Simon Baker is funds long MSFT; Anthony Scaramucci is long AAPL; Anthony Scaramucci is long C; Anthony Scaramucci is long GS; Anthony Scaramucci is long JPM; Anthony Scaramucci is long MSFT; Anthony Scaramucci is long GOOG; Steve Grasso is long AAPL; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long GOOG; Steve Grasso is long GDX; Steve Grasso is long LF; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long PXD; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long VLO; Steve Grasso is funds long HPQ; Steve Grasso is funds long ZNGA; Steve Grasso is funds long BRCM.